Inventory Tax Credit Calculator

​The Department of Revenue has developed an downloadable, Excel-based calculator for the new inventory tax credit. We encourage all taxpayers and preparers to utilize this useful tool. The calculator will calculate the inventory tax credit for one or more taxpayers locations, generate a completed Schedule INV, and generate an accompanying supporting worksheet that should be attached to the return.

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Information Needed to Use the Calculator

Lines 31-36 are the relevant lines on this form, as this is where the inventory values are reported.

The inventory tax credit is NOT based upon all the tangible personal property tax you paid timely to a Kentucky taxing jurisdiction. It is based ONLY upon the taxes regarding inventory. Most Kentucky property tax bills do not separately itemize the tax on inventory from taxes on other categories of tangible property; therefore, the DOR Inventory Tax Credit Calculator is the best tool to correctly compute the tax credit.

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​The county and the district number where the taxable property is located

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​Many property tax bills include the county and district number where the property being assessed is located.

DOR's dedicated inventory tax credit phone line at (502) 564-1555 can also provide the information if the taxpayer can provide the FEIN or the SSN of the entity or person paying the tax.

The websites of most county property valuation administrators (PVAs) also have address lookup functions that can provide district numbers.

Finally, the taxpayer can call the PVA of the county where the property is located to obtain the district number. If you need to find contact information for your county PVA, you can look it up here.

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​Receipts or cancelled checks

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These are necessary to verify that the tax was timely paid or paid within the discount period. Copies of cancelled checks are not required to be attached to the return; however, they should be retained for your accounting records to substantiate the tax credit.

FEIN or SSN (all applicable numbers if multiple taxpayers file under one taxpayer, such as a consolidated corporate group or when a taxpayer is a disregarded entity filing under their parent)

Kentucky Corporate and LLET Account Number (if applicable)

Multiple Locations

Taxpayers with multiple locations that are subject to ad valorem tax on inventory can file a single Schedule INV. DOR's online inventory tax credit calculator has the capability to track numerous separate locations. Data from each location can be entered into the online calculator and it will generate a single Schedule INV.

Supporting Documentation

If you choose not to use the calculator, copies of all property tax bills that contain inventory tax are required to be attached to the income tax return on which the credit is claimed in addition to the required Schedule INV and Schedule TCS or ITC.